April 2, 2020

Alaric Degrafinried

Interim Director, San Francisco Public Works

1 Dr. Carlton B. Goodlett Pl. Room 348

San Francisco, CA 94102

Re: Request to withdraw Zero Waste Incentive (ZWI) funds from the 2019 and 2020 Rate Years for the

purposes of upgrading the Construction and Demolition recycling equipment to increase throughput,

improve material recovery and product quality at the iMRF facility.

Dear Mr. Degrafinried:

On May 12, 2017, the City and County of San Francisco Public Works Department completed the review

of Recology’s Refuse Rate Application and issued the Director’s Report and Recommended Orders on the

Application. In the Directors Report a 4 Tier Zero Waste Incentive (ZWI) was established. Tiers 1 & 2 set

forth disposal targets and it was determined that if the Recology Companies failed to meet the targets as

established, the incentive funds would be rebated back to the ratepayers. Furthermore, the Zero Waste

Incentive for Tiers 3 and 4 targets were much more challenging to achieve and, upon failing to reach the

targets, Recology could request to utilize those ZWI funds for new programs that reduce disposal.

Recology is proposing to utilize the ZWI funds from RY 19 and RY20 to fund the modernization of the

existing Construction and Demolition (C&D) facility with the intent of increasing throughput and

diversion.

Past ZWI Projects

To date, Recology has on three separate occasions requested and received ZWI funds, which have

significantly enhanced the operations at Recycle Central®, improved throughput, allowed for the recovery

of new items and enhanced our ability to further our progress towards zero waste.

The first ZWI funds were utilized in RY16 to modernize Recycle Central® by adding crucial system

enhancements to our commingled recyclable sorting system. The upgrade to the commingled recycling

processing system, added much needed capacity and improved the equipment utilized for separating

material types. The enhancements created a more modern comprehensive recovery system that increased

the facility’s throughput and recovery rate and provided the ability to target new materials. The

enhancements were completed on time, on budget and without significant facility downtime.

During RY17, the second ZWI proposal funded the installation of a new metering drum system on our

back-up line with new infeed hoppers on the original commingled lines, a new cross belt magnet for

enhanced recovery of ferrous items out of the glass stream, a container system bypass line to improve plant

functionality and an upgrade to the plant-wide Master Control System (MCS) at Recycle Central®. The

upgrades performed to the commingled line during the last rate year significantly improved the plant’s

functionality and efficiency. The updated MCS allowed Recology to run the new lines and the old lines

from one interconnected system. The upgrade also allowed us the ability to add important functions for the

older lines (i.e. control motor starts/stops, adjust motor and belt speeds, control storage hopper door

functions, and provide fault detection). Additionally, the new MCS has eliminated the risk of an indefinite

shutdown due to running an outdated and unsupported plant control system.

During Rate year 18, the third ZWI proposal funded Recycle Central® facility enhancements that increased

recovery despite challenging market conditions. The upgraded automated container sorting system and

optical sorting equipment upgrades allowed for more effective sorting of containers and has allowed

Recology to effectively separate PET clamshells from PET bottles, greatly improved the recovery of HDPE

and aluminum containers. In addition to the mechanical aspects of the upgrades the electronic data

collection system with material characterization capabilities have allowed us to better understand and

improve plant performance and material quality.

Recology has been continuously striving to achieve a high recovery rate at Recycle Central® and we

believe that we have made great strides in improving the facility to accommodate programmatic tonnage

increases in tonnage driven by the roll out of the smaller 16 gallon trash carts, quality control standards

imposed by our new markets and ultimately the creation of better quality recycled commodities that set our

product apart from our industry peers in these times of unstable and reduced market demand. At this point

in time Recology believes that it would be prudent to invest the Rate Year 19 and 20 ZWI funds into the

Tunnel Beatty Construction and Demolition sorting line located at the Recology SF iMRF. Our on-going

challenge has been to effectively sort the existing C&D material and maintain reasonable diversion levels

on our existing processing system while keeping up with the high volume and inbound material variability.

Essentially the operational burden being placed on the existing equipment exceeds its original design

parameters because the composition of the C&D has changed since the sorting system was put into service.

In the late 1980’s Recology San Francisco, doing business as Sanitary Fill Company, did a floor sort of

inbound debris boxes to recover wood and metal. The floor sort was conducted on the eastern side of the

transfer station. The hillside was modified to make a rudimentary load out facility to accommodate the

transportation of the sorted commodities to the scrap yards and wood markets. Soon after the Sanitary Fill

management team initiated the process of constructing the first C&D sorting line in the same location as the

floor sort operation. The new line represented the best available technology at the time and with the

exception of a vibrating screen to remove fines from the material and an electromagnet to remove small

metal objects from the fines, all of material recovery was accomplished via manual sorting. The materials

sorted at that time were: wood, metal, fines and concrete/mixed inerts. In 2001 The San Francisco

Companies submitted a rate application to the City of San Francisco to enclose and expand the C&D

facility. The project was approved by the Rate Board and the facility was dubbed the iMRF (integrated

Material Recovery Facility) and construction was initiated pursuant to the Rate Order. The project was

comprised of constructing a 45,000-square foot building east of the Transfer Station. It anticipated utilizing

the air space adjacent to the Sanitary Fill Shop to create additional floor space for material storage and

formalized the overhead loadout carved into the hillside with a modern loadout with scales to maximize

payload and over the road safety. Directly adjacent to the existing C&D sorting line a nearly identical line

was constructed to double the facilities throughput and diversion. A bunker for the recovery of mixed

paper was added along with an additional bunker for the recovery of large mixed plastic items typically

associated with C&D projects. A wood grinder was installed along with two overhead Peerless Storage

hoppers directly to the east of the building to facilitate the storage and loading of the wood chips and C&D

fines. At the time, the new iMRF was a state of the art facility with a design capacity of 500 tons per day

of throughput and was able to tout recovery rates in the mid 70% plus range. Unfortunately, given the

nature of the C&D material currently being utilized in modern construction we are not experiencing such

robust throughput and our average diversion is in the 50% range. As with many other aspects of our

business the construction industry is employing many new building products and techniques that were not

contemplated when the facility was originally constructed. Examples of the changes in the construction

industries methods are: the use of lightweight foam for non-structural architectural elements of a building,

moving away from cladding building in plywood for sheer strength and utilizing various gypsum based

exterior rated wall board products, plastic pipe as opposed to galvanized or copper pipe, and using

laminates or composite wood products in lieu of virgin timber products for structural elements.

In addition to the changes in the construction industry, the Green Building Council has revamped their

green building certification process which requires more contractors to produce single commodity source

separated loads of easy to recycle material for larger jobsites in lieu of comingled C&D loads. This means

that the comingled C&D loads that we do receive are comprised of smaller, lighter more difficult to sort

items as opposed to the traditional wood and metal rich loads that we were accustomed to receiving.

The Recology SF management team believes that in order to improve the recovery rate and deal with the

material employed in construction as well as the increased volume, we need to look at making additional

improvements to our processing system. Pursuant to the 2017 Directors Report, Recology is submitting

this proposal requesting the approval to use RY19 and RY20 Tier 3 & 4 Zero Waste Incentive funds to

modernize the iMRF C&D sorting line, with the purpose of increasing the throughput and significantly

improving the recovery rate of the facility.

The RSF iMRF modernization project will consist of 4 major phases: 1. The renovation of the eastern

C&D sorting line that was constructed in 2003; 2. The removal of the original obsolete sorting line that was

installed in 1987; 3. Installation of a material size reduction system and mechanical size and density

separation, and; 4. The installation of a fully autonomous sorting system with minimal manual QC.

1. Renovation of the Eastern C&D Sorting Line and Electrical Upgrades

The existing C&D line that was constructed in 2003 has exceeded its useful service life. The conveyor belt

infeed system is worn out and in need of a complete overhaul. The loading hopper belt guides and supports

need to be rebuilt and chain link belt system and drive sprockets need to be completely replaced. In order

to continue to process material on the existing line Recology will refurbish the conveyor frame and belt

guides and install a new steel chain link belt and all of the associated support and running gear required to

operate the conveyor. In anticipation of the renovation project, provisions will be made to the electrical

system to accommodate for modern variable speed drive technology and the significantly larger service

load associated with the new equipment. The renovated line will operate in a similar fashion as it does

today, except that all residue from the manual sorting operation will be sent to an automated state of the art

C&D system for further processing. The existing facility has a main service panel capable of handling 2000

amps. Currently the panel is fed by a 700amp service. The proposal contemplates a total amp requirement

in excess of 1200 amps. In order to meet the requirements of the new equipment, a second 700amp service

will be brought into the existing iMRF building from the West side of the Transfer Station.

2. Removal of the Obsolete Sorting Line and Associated Equipment

The first sorting line installed during the late 80’s was completely rebuilt and modified to accommodate

additional commodities when the iMRF was constructed. At this point the sorting line has outlived its

service life. In lieu of repairing the old sorting line, it will be removed along with the finger screen to make

space for the installation of new sorting equipment, conveyors and the automated sorting system.

3. Material Size Reduction, Mechanical Size and Density Separation

Size Reduction of C&D Feedstock

In modern C&D operations it is customary to employ large scale mechanical size reduction to C&D

feedstock prior to subjecting the feedstock to modern size and density separation. This proposal will allow

Recology to install two size reducers on the C&D sorting line. The concept that is being used in a modern

C&D facility is to manually sort the C&D material with the intention of recovering all large, easy to sort

items that can be pulled off the sorting line prior to size reduction. Once the easy to sort material has been

liberated from the material stream it is necessary to subject what is left over to a size reduction process that

will allow for enhanced mechanical sorting by either size density or by other mechanical means. In order

to accomplish the size reduction process, it has been determined that the combination of two rotary sheer

shredders would need to be used. The first shredder (a Coarse Cut Shredder) will perform the task of

grinding the C&D material into a uniform and manageable 12 inch minus size that would be capable of

going into a secondary shredding (a Fine Cut Shredder) system that would then reduce the unprocessed

material into a 6 inch minus material. Once the C&D material had been sized reduced to a uniform size we

would then employ a series of mechanical sorts that would further separate the C&D material into its

constituent components based upon size and density.

Mechanical Separation of C&D by Size

The first mechanical sorting process utilized would be a Debris Roll Screen (DRS) to precisely size the

feedstock. The DRS imparts an aggressive wavelike agitation to the C&D material, and the waterfall effect

on both screen decks further agitate and turn material to ensure effective separation – as in the case of dirt

and gravel on top of a piece of wood – the wood tumbles and turns over the waterfall drop. The patented

gear timing paired with variable speed drives allow for fine tuning to adjust to variable material conditions.

The discs are designed so that as one disc tip is moving downward, the reciprocating disc tip kicks

troublesome materials out of areas that are prone to jamming. The DRS have proven to be flexible enough

to process any and all material included in this material stream. The DRS is extremely efficient, using the

entire screen to size materials. This leads to a highly dependable low maintenance disc screen that

effectively sizes high volumes of material with precise sizing, low energy consumption and with a high

degree of production time.

Features & Benefits of a DRS:

• Excellent material agitation and separation

• The DRS disc screen allows for accurate sizing of material, reducing product loss

• Negative inclination, disc and shaft design minimizes material wrap, reducing downtime over the

typical positively inclined screens employed in older C&D facilities

• Heavy-duty discs ensure long disc life and reduced maintenance over conventional disk screens

Top Down View of a DRS

Mechanical Separation of C&D by Density

Once the C&D material has been dimensionally classified by the DRS screen, we will then send the

remaining unsorted material into a Double Drum Separator (DDS). The DDS equipment has been

developed over the course of many decades and provides near perfect air separation based upon material

density. Using a DDS post mechanical shredding and size separation is a common application for these

types of drum and air-based density separators. DDS are highly dependable assets that boast excellent and

proven separation that is highly tunable to a customer’s material stream.

The DDS employs two counter rotating drums and both positive and negative laminar airflow that separates

the inbound material stream into three fractions. The density-based separation creates the following

fractions: a heavy fraction (aggregates), a mid-heavy fraction (wood and gypsum) and a light fraction

(lightweight recyclables, including containers, plastics, paper and cardboard).

Features & Benefits of a DDS:

• High capacity drum separator can easily handle up to 50 tons per hour

• Low maintenance and few wear parts

• Low downtime

• Adjustable separation settings allow operator to create precise separation

Typical Density Separator

Inner workings of a Double Drum Separator (DDS)

4. Fully Autonomous Sorting System

Once the C&D material has been manually sorted, shredded, mechanically screened by size and then

separated by material density, Recology intends to utilize a Fully Autonomous Sorting System (FASS) to

further segregate the C&D into commodities for recycling. Autonomous material sorting systems represent

an industry breakthrough in recycling technology and have been used in Material Recovery Facilities for

several years now. The sorting technology uses artificial intelligence (AI) that identifies materials in a

similar fashion as a person does, with sight (a camera system) and a neural network brain (AI). Up until

now there was not a satisfactory application of the automated high volume mechanical sorting technology

in a C&D facility. Large heavy lift mechanical sorters have recently been implemented in C&D recycling

operations with marginally acceptable results. The units are expensive to acquire and operate, have

relatively slow pick rates and have marginal accuracy as compared to a manual sorting line. By

implementing a very precise screening and mechanical sorting operation on the front end of the C&D line

Recology believes that it can improve recovery and throughput by employing small nimble mechanical

sorters with high pick rates. Autonomous sorting technology has progressed to a point that the smaller

units designed to sort cans, containers and bottles can be utilized in a C&D application in a highly

dependable fashion. Recology is working very closely with its equipment vendors to integrate these

mechanical sorters into its C&D operation. Recology SF will be the first C&D operation to actively

employ small lightweight mechanical sorters on a C&D line in North America. Based upon the

manufacturers specifications, the mechanical sorter that can sort material at a rate of up to 65 picks per

minute per unit with a yield of approximately 90 to 80%.

In addition to the mechanical sorters, Recology intends to use an optical sorter to liberate wood from the

mid fraction of the C&D stream and a second optical sorter to sort containers and paper from the light

fraction of the C&D stream. The recovery of wood is difficult to accomplish with an optical sorter in a

normal C&D setting but given that Recology will utilize size reduction technology prior to sorting it will be

fairly easy to sort 6” minus dimensionally sized wood pieces with a purpose built optical sorter and a high-

volume air sorting bar. Not only will the optical be able to sort sized dimensional wood, it will also be

capable of differentiating between recyclable Grade A wood and nonrecyclable painted or treated Grade B

wood. The introduction of an optical sorter in a C&D line to sort wood is a relatively new development

brought about by recent advances to color detection technology within the optical reader. The second

optical positioned on the light fraction line will function in a similar fashion as other optical units deployed

within the recycling industry and will sort recyclables such as cans, bottles and paper. Unlike mechanical

sorting systems the optical sorters can perform hundreds of sorts per minute with remarkable accuracy.

Features & Benefits of the FASS:

• Very high pick rate

• No complicated articulated grasping device to fail

• Consistent and predictable performance

• Significantly cheaper than larger heavy lift robots

• Increased data on material composition and performance

• Lower operating and repair costs

• Optical sorting will allow for recovery of containers

• Paper can be removed if quality is consistent with market expectations

A Processing Line Utilizing Two FASS Systems

How Automated Sorting Works

An Optical Sorter

How an Optical Sorter Works

Funding Request

The C&D Facility Modernization Project, while intended to increase the material recovery and throughput,

also serves other significant purposes for Recology SF. The nature and amount of the C&D material being

sorted demands a large project that is relatively expensive as compared to recent ZWI withdrawal requests.

The current estimated project budget is 8.16 million dollars. Recology acknowledged the value of the

modernization early on and developed an approach whereby the approval of project would help serve our

short-term diversion goals, provide us with invaluable experience operating a semi-automated C&D facility

and allow us to procure equipment that will be incorporated in our future C&D Facility.

Employing high speed automated sorting technology has never been contemplated in the mixed C&D

market until this point. Recology believes that this is the next logical step in integrating the new sorting

technology into the C&D recycling industry and would like to be the first processing operation to utilize the

automated sorters in a C&D MRF. Significant information will be gleaned from the operation of the

modernized facility and technology will help inform the next steps on the road to Zero Waste. The

knowledge gained will allow the Recology team to make more thoughtful equipment decisions in our new

facility that will be based upon real world experience derived from processing the San Francisco C&D

material stream. This information will help us not only with our equipment acquisition and installation

decisions, but will allow us to make solid estimates of the proposed facility’s mass balance, drive future

recovery assumptions, fine tune mechanical yield loss calculations and ultimately enable us to design a

better facility. The modernized facility will not only provide us with invaluable information and real-world

experience but more importantly nearly all of the processing equipment purchased as part of this project

can be used in the new C&D facility that will be constructed in future years. Recology estimates that 4.96

million dollars’ worth of equipment has the potential to be re-used in a new C&D facility effectively

reducing the new equipment acquisition requirement by that amount. Recology believes that this approach

will not only proportionally reduce future equipment acquisition costs but also represents an effective

utilization of ratepayer dollars to acquire required equipment at current pricing levels and will

incrementally impact future rate adjustments in a positive way.

Recology completed the RY18 ZWI modifications to Recycle Central ® at Pier 96 for less than what was

anticipated. Recology would like to seek the City’s approval to utilize the remaining ZWI funds set aside

for RY18 to assist with the funding of this ZWI project. At this time Recology would also like to request

that the RY19 well as the RY20 ZWI funds be put towards this project. The RY19 ZWI funds will provide

adequate financial resources for Recology to modify the existing infrastructure within the iMRF and place

binding sales orders with the equipment vendors for the required processing equipment. In July 2020

Recology is proposing to withdraw the RY20 ZWI funds to pay for the: installation of the equipment,

satisfy the remaining balances due to the equipment vendors, commission the equipment and initiate

operation of the facility by September 30, 2020. This ZWI request contemplates that Recology will not

attain the current ZWI goals established within the San Francisco Rate Order for RY20 and that the City

will allow the Company to withdraw the ZWI funds as part of this request to satisfy the equipment

acquisition and installation balance due to our vendors. If by chance Recology were to achieve the ZWI

goals by the end of RY20, we would then pledge that the withdrawal of the incentives funds would be

utilized to close out this project without exception.

Supporting Documentation

Below are six tables that summarizes Recology SF’s project costs, show the current iMRF facilities Mass

Balance and Recovery Rate, project the future Mass Balance and Recovery Rate, demonstrate the

anticipated Disposal Reductions, show the Project Funding Breakdown and establish the Project Timeline

with a September 30, 2020 operational date. In addition to the following tables Attachment 1 shows the

schematic level design of the modernized C&D facility. Schematic I: is the top down view of the existing

C&D processing lines. Schematic 2: is the top down view of the proposed facility enhancements with all

the new equipment called out in green and blue and material flow indicated with arrows. Schematic 3:

represents the view of the proposed elevations of the equipment. Attachment 2 represents the material and

process flow diagram.

Table 1: Project Cost Summary

Recology SF 2020 ZWI Equipment, Installation, Commissioning & Life Safety

Facility & Existing Equipment Related Items

TITUS MRF Services

Infeed Conveyor Rebuild & Conversion for new C&D system

Parts $194,505.00

Labor $80,950.00

Tax $8,874.29

Total (Existing) Titus MRF Services $284,329.29

Main Electric

Pull new electrical service into existing iMRF electrical panels

Parts $37,500.00

Labor $40,000.00

Tax $1,710.94

Total Main Electric $79,210.94

Walschon Fire Suppression Systems

Modification of Passive Fire Suppression (per code req.)

Design $25,500.00

Installation $181,188.00

Tax $8,266.70

Total Walschon Fire $214,954.70

Fire Rover

Installation of Active Fire Suppression system

Equipment (1 Double Riser Unit)* $59,250.00

Installation & Commissioning $59,250.00

Shipping * $7,800.00

Tax* $5,406.56

Total Fire Rover $131,706.56

Total Facility & Equipment Related Items $710,201.49

New Processing Equipment & Integration Services

Titus MRF Services

iMRF Processing Equipment installation & System Integration

Structural Steel Package, Conveyors and Electrical* $1,817,790.00

Two Keiser 100HP Compressors, tank and supply* $220,000.00

Pellenc 2800 Mistral Fiber Sorting optical sorter* $405,000.00

Labor $1,110,865.00

Tax* $111,452.29

Total (New) Titus MRF Services $3,665,107.29

Total (Existing) Titus MRF Services (from above) $284,329.29

Total (New) Titus $3,949,436.58

Van Dyk Recycling Solutions

Pellenc 2800 single HD air bar wood optical sorter* $415,796.14

Tax* $18,970.70

Total Van Dyk $434,766.84

SSI Shredding Solutions

Two Primax PR4400 Size Reducers with Required Options

Primax PR4400 size reducer with 2" x 7" Cutting Table* $575,000.00

Primax PR4400 size reducer with 2" x 11" Cutting Table* $615,000.00

Required Options for installation* $65,800.00

Commissioning & Start Up $9,500.00

Shipping* $17,000.00

Tax* $57,295.88

Total SSI $1,339,595.88

Bulk Handling Systems (BHS)

Equipment* $1,488,417.00

Labor, Commissioning & Start Up $134,191.00

Shipping* $33,500.00

Tax * $67,909.03

Total BHS $1,724,017.03

Total Processing Equipment & Integration $7,163,487.03

Total Project Budget $7,873,688.53

* Items and costs that will be utilized in the future C&D Facility Modernization. (Note - only half the cost of Structural Steel Package, Conveyors and Electrical) $4,961,040.30

Table 2: Existing Mass Balance & Recovery Rate

Material Percentage TPH Recovered

Wood 7.21% 1.44

Grade B Wood 0.00% 0.00

Metals 11.06% 2.21

Concrete 1.09% 0.22

Cardboard 0.59% 0.12

Plastic/Paper 0.73% 0.15

Sheet Rock 1.48% 0.30

Fines 26.23% 5.25

Residue 51.61% 0.00

Totals 100.00% 9.68

Average TPH 20 Average Overall Recovery % 48% Average Overall Recovery TPH 9.68

Table 3: Proposed Mass Balance & Recovery Rate Assumptions

Material Percentage TPH

Processed Yield * TPH

Recovered TPH Loss

Wood 14.50% 5.08 95% 4.82 0.25

Grade B Wood 8.00% 2.80 85% 2.38 0.42

Metals 10.80% 3.78 95% 3.59 0.19

Concrete 7.00% 2.45 90% 2.21 0.25

Cardboard 0.90% 0.32 90% 0.28 0.03

Plastic/Paper 0.90% 0.32 90% 0.28 0.03

Sheet Rock 0.90% 0.32 90% 0.28 0.03

Fines 25.00% 8.75 100% 8.75 0.00

Residue 32.00% 11.20 100%

Total 100.00% 35 93% 22.60 1.20

Average TPH Processed 35

Estimated Net Recovery Rate 65%

* Yield is the sorting efficiency, with mechanical and automated sorting losses taken into consideration.

Table 4: Proposed Recovery Rates and Disposal Reduction

Table 5: Requested Project Funding Breakdown

Funding Source Total Notes

Zero Waste Incentives, Tiers 3&4, RY18 490,000.00 Remainder of approved funds for the Pier 96 AI Integration project

Zero Waste Incentives, Tiers 3&4, RY19 3,764,949.00 ZWI available for projects from 6/19 to 5/20

Zero Waste Incentives, Tiers 3&4, RY20 3,869,484.00 Projected future ZWI finding to be applied to the project

Total ZWI Funds Available 8,124,433.00

Equipment Package Fully Operational 7,873,688.53

Annual fire Monitoring Charge 26,520.00

Maintenance Manager 211,000.00

2 Service Technicians 417,000.00 Operating Engineers Local 3

Project Installation Contingency 250,000.00

Total Budget 8,778,208.53

Material

Current

Recovery

Percentage *

Current

TPH

Recovered

Proposed

TPH

Processed

Estimated

Recovery

Percentage**

Recovery

Yield ***

Estimated

TPH

Recovered

New Net

Tons

Recovered

Wood 7.21% 1.44 5.08 15.50% 95% 4.82 3.38

Grade B Wood 0.00% 0.00 2.80 8.00% 85% 2.38 2.38

Metals 11.06% 2.21 3.78 11.80% 95% 3.59 1.38

Concrete 1.09% 0.22 2.45 9.00% 90% 2.21 1.99

Cardboard 0.59% 0.12 0.32 0.90% 90% 0.28 0.16

Plastic/Paper 0.73% 0.15 0.32 0.90% 90% 0.28 0.13

Sheet Rock 1.48% 0.30 0.32 0.90% 90% 0.28 -0.02

Fines 26.23% 5.25 8.75 28.00% 100% 8.75 3.50

Residue 51.61% 0.00 11.20 25.00% 100%

Average TPH Processed 20 35

Average Overall Recovery TPH 9.68 22.60 12.92

Average Daily Recovery TPD 116.16 155.01

Average Annual Recovery TPY 30,201.60 40303.38

* Estimated material composition based on typical C&D compositions. Current Recology data that shows 55% of residue is wood, aggregate,

metals and fines that are in fact recoverable but not currently being recovered.

** All recovery estimates are based upon maximum design capacity and throughput. Actual results may differ due to the incoming composition

of the material. Recovery assumptions are based upon two 8 hour shifts with 6 hours of production time each.

Additional Recology Funding 653,775.53 Recology will cover all budget overruns associated with the project

Table 6: Project Timeline

Project Item Timing

Submit Project Proposal to SFE January 2020

Submit Project Proposal to SFPW April 1, 2020

Obtain Project Approval April 30, 2020

Equipment Orders Placed May 1, 2020

Submit Building Permits May 6, 2020

Start Facility Related Improvements June 1, 2020

Fabrication of Equipment (12 Weeks Max) May 1 to July 22, 2020

Delivery and Staging July 31, 2020

Installation Started August 3, 2020

Installation Completed (6 Weeks) September 14, 2020

Commissioning Started September 15, 2020

Commissioning Completed September 28, 2020

Total Time 34 Weeks

Please let me know if you have questions or require additional information. Upon receiving approval Recology will

take the necessary steps to: procure the new equipment, repair the existing equipment, permit and install the new

C&D processing system. We fully expect that the project will be completed and fully operational by September 30th.

of this year. Thank you for your consideration of this proposal.

Sincerely,

Recoverable Signature

XJohn F Porter

Vice President & Group Manager - San Franci...

Signed by: 71a004fa-b246-46dd-ac53-03b220145198

John F. Porter

Vice President and Group Manager

cc: Julia Dawson

Robert Haley

Attachment 1

Schematic I

Top down view of the existing C&D processing lines.

Schematic 2

The top down view of the proposed facility enhancements with all the new equipment called out in

green, red and blue

Schematic 3

Represents the view of the proposed elevations of the existing and proposed equipment.

Attachment 2

Material and Process Flow Diagram